Copper Prices Test High of $8,800 By End-2021 – OCBC

“Copper prices demand may have yet to peak vis-a-vis steel, while supply also remains a bigconcern, given the concentration of production in South American economies.” 

“It remains a question mark if the under-investment in copper mine CAPEX could impede mining output beyond 2021.” 

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“We think copper may peak at $8,800/mt by end 2021.”

Demand for copper rod and wire shouldstart to peak in H2 2021. Meanwhile, supply disruptions in South America will likely persist on under-investments in mines this year and questions over thespeed of vaccine distribution in the continent. Strategists at OCBC Bank see copper testing a high of $8,800/mt at the end of the next year. 

Copper futures on Tuesday slipped by Rs 3.85 to Rs 602.10 per kg as participants cut down their positions amid muted demand in domestic market. On the Multi Commodity Exchange, copper contracts for January delivery eased by Rs 3.85, or 0.64 per cent, to Rs 602.10 per kg in a business turnover of 4,361 lots.

Analysts said trimming of positions by speculators due to muted demand in spot market mainly led to the fall in copper prices here.

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